Financial Literacy Basics for teenagers

A mutual fund is a managed portfolio of many different stocks

• True

• False

An index fund or Exchange Traded Funds (ETFs) is a to match the performance of a group of companies

• True

• False

Even with all of the recessions and expansions of recent and distant past, diversified stock holdings like mutual funds, index fund/ETFs have earned about a 7% real annual rate of return.

• True

• False

An asset earning 3% annually will double in value in 23 years, but an asset earning 7% will double value every 10 years.

• True

• False

Financial Literacy Checklist:

1. 1. (a)   Earning through a budget

2. 2. Save to build up ​ (b)  

3. 3. Put together a ​ (c)   financial plan

4. 4. ​ (d)   expenses and liabilities

• maximize
• assets
• diverse
• limit
• increase